sustainability and smart grid - tappi
TRANSCRIPT
Sustainability and Smart Grid
Implementing a Non‐residential Smart Metering System
PaperCon 2011 Page 195
Smart Grid
Popular Topics in the News
• Smart Grid
• Smart MeterSmart Meter
• Micro Grid
• Distributive Generation
Most talk is about household demand management – change of lifestyle in exchange for potentially lower power bills
People move decisively when incentives are high enough relative to risk and effort
Only possible when permitted by regulators / legislatorsOnly possible when permitted by regulators / legislators
PaperCon 2011 Page 196
Smart Grid
Deregulated Ohio Electric Choice
• People moving for 10‐20% off 55‐60% of their bill or 5‐10% utility discount• One time; no effort; little risk
Smart Meter Requires Active Participation
Residential Issues• Many will not do it especially with the peak hour penalties• Actual bill could be higher• Demand shift is the only choice for mosty
PaperCon 2011 Page 197
Smart Grid For Industrial Facilities
Industrial Opportunities Can Advantage Current Behavior• Reduce and manage energy cost (on a real time basis)• Control electric costs (Make vs. Buy)• Monitoring electric system (more granular – Dashboard)
‐ Monitoring will improve process/operation‐ Facilities have business choices for management of electricgsupply/demand
Properly set up and managed electric power costs can be minimized
Ideally capped to fuel cost and conversion factor
PaperCon 2011 Page 198
Smart Grid For Industrial Facilities
Can We Do It?
Regulatory
• Located in deregulated state (PUC and State Legislature)
PaperCon 2011 Page 199
Smart Grid For Industrial Facilities
Source eia.doe.govData as of September 2010
•The map below shows information on the electric industry restructuring. Click on a State for details. Active =
Status of Electricity Restructuring by StateData as of: September 2010
•Restructuring means that a monopoly system of electric utilities has been replaced with competing
sellers.
Pricingmonopolyeliminated
d
Source: Energy Information Administration
PaperCon 2011 Page 200
Smart Grid For Industrial Facilities
Can We Do It?
Regulatory
• Located in deregulated state (PUC and State Legislature)
• If no ‐ Can you negotiate a “deal” with utility and PUC?
d• Located in an ISO
• Enabling/incenting environment (PUC and State Legislature)
PaperCon 2011 Page 201
Smart Grid For Industrial Facilities
Can We Do It? (cont.)
Effectively
• Current grid interface
‐ Distribution level or transmission level
• Node pricing historyNode pricing history
• Current electric tariff
• Smart metering tariff
• Flexibility of facility to manage load
PaperCon 2011 Page 202
Smart Grid For Industrial Facilities
Can We Do It? (cont.)
Technically
• Available data stream from power system
• Convert data to information
h f l• Depth of utility operation
PaperCon 2011 Page 203
Smart Grid For Industrial Facilities
Electric GridElectric Grid
Perfect World• Buy low• Sell high
Real Time Grid Pricing• Is a perfect worldp• Demand based pricing• Little to no inventory
Imperfections (Necessary) Imperfections (Necessary)Rules and Regulations• FERC• NERC• NERC• ISO’s• Tariff requirements (Utility Commissions and Utilities)
f l d l Impact perfect real time price model
PaperCon 2011 Page 204
Smart Grid For Industrial Facilities
Smart Grid requires willingness to manage exposureSmart Grid requires willingness to manage exposure
Industrial Facility National Grid (North America)
Electricity
• Source of Steam (Boilers)S f El t i it• Sources of Electricity
- Grid - From steam; gas, oil, solar, wind, fuel cell, on site
Sourcing electricity is an economic decision
PaperCon 2011 Page 205
Smart Grid For Industrial Facilities
Evaluate Your Facility
Grid Interconnect
Utility Complex
• Steam capacity match to demand
• Electric generating capacity match to demandElectric generating capacity match to demand
• Flexibility
• Fuel source
• Conversion factor
• Incremental cost to produce
• Current utility agreementy g
PaperCon 2011 Page 206
Smart Grid For Industrial Facilities
Evaluate Your Facility
Process Flexibility
C ll d l d• Controlled load management
• Operational shift to off peak
• Conservation opportunities
• Options to store energy
‐ Work in progress
By product‐ By product
‐ Finished goods
PaperCon 2011 Page 207
Smart Grid For Industrial Facilities
Evaluate Your Facility
Key Questions
D l d• Deregulated state
• Demand flexibility
• MW production costs vs. grid pricing profile
• MW production costs vs. current tariff
• Exposure management vs. stability of tariff
• Can facility zero tie (Now)• Can facility zero tie (Now)
1. Self supply generation
2. Protect price upside
• Utility potential for development of additional electric generation
PaperCon 2011 Page 208
Smart Grid For Industrial Facilities
Evaluate Your Facility
Smart Grid Transition
20% h i l• 20% technical
• 80% regulatory
PaperCon 2011 Page 209
Smart Grid For Industrial Facilities
SMART Evaluation
Excess coal fired steam capacity
Mismatched generation vs. steam requirements
Captive utility substation at transmission voltage
f l lTen years of real time utility agreement
• Risk and flexibility skills
• Knowledge of hourly pricing
Deregulated state
PaperCon 2011 Page 210
Smart Grid For Industrial Facilities
PaperCon 2011 Page 211
Smart Grid For Industrial Facilities
PaperCon 2011 Page 212
Smart Grid For Industrial Facilities
PaperCon 2011 Page 213
Smart Grid For Industrial Facilities
SMART ProjectSMART ProjectBeyond the Turbines!
LGIA MISOLGIA MISO
Dual node (gen/load) MISO – Capable to buy/sell ‐ Unique
Purchased substation from utility – Get to transmission level
Installed real time meters at substation – Monitor
• Required by utility Cross check utility
Formed and registered as a CRES – Purchase at wholesaleFormed and registered as a CRES Purchase at wholesale
Contracted power marketer – Monitor ISO weekly billing, Day ahead bidding, PPAs
PI Historian / SMART reporting – Data > Information
Operator interface to grid – Price
Calculated marginal buy/sell – Really understand your facility
Focused on conservation – ROI is improved
PaperCon 2011 Page 214
Smart Grid For Industrial FacilitiesHow It Works
Boiler(s) on line to feed process steam
Utility operators monitor grid real timeDecisionDecision
• Buy• No buy• SellSell
Hourly decisions
Results hourly historical• Total generation• Total generation• Average of twelve 5 minute prices
Communicate to operators• Trends• Trends• Power Marketer Model
‐ Sale > Day ahead, Real time‐ No Buy > Zero modeNo Buy > Zero mode ‐ Buy mode
PaperCon 2011 Page 215
Smart Grid For Industrial Facilities
OPERATOROPERATORINFORMATION
PaperCon 2011 Page 216
Smart Grid For Industrial Facilities
PaperCon 2011 Page 217
Smart Grid For Industrial Facilities
PaperCon 2011 Page 218
Smart Grid For Industrial Facilities
PaperCon 2011 Page 219
Smart Grid For Industrial Facilities
PaperCon 2011 Page 220
Smart Grid For Industrial Facilities
PaperCon 2011 Page 221
Smart Grid For Industrial Facilities
MANAGEMENTMANAGEMENT INFORMATION
PaperCon 2011 Page 222
Smart Grid For Industrial FacilitiesSmart Papers Day‐Ahead Report 2/12/2011
Hour EndingCIN.SMARTGEN DA
LMP FcstCIN.SMARTGEN Day Ahead
CIN.SMARTGEN Real Time
CIN.SMARTGEN Only Day Ahead
CIN.SMARTGEN Only Real Time
CIN.SMARTGEN RT LMP Fcst
HE 1 30.19 0 0 10 10 27.98HE 2 29.99 0 0 10 10 31.01HE 3 29.13 0 0 10 10 28.14HE 4 28.31 0 0 10 10 27.01HE 5 27.57 0 0 10 10 25.95HE 6 28.15 0 0 10 10 31.18HE 7 30 57 0 0 10 10 45 20
$60 LMP Forecast vs. COP
COP Base Up DownHE 7 30.57 0 0 10 10 45.20
HE 8 33.39 0 0 10 10 31.51HE 9 35.61 0 0 10 10 44.82HE 10 39.93 0 0 10 10 43.86HE 11 42.81 0 0 10 10 36.21
HE 12 40.38 0 0 10 10 36.66
HE 13 35.47 0 0 10 10 29.56HE 14 32.28 0 0 10 10 27.96HE 15 30.49 0 0 10 10 29.17HE 16 30.13 0 0 10 10 28.03
$30
$40
$50
pRT LMP
HE 17 30.82 0 0 10 10 39.54HE 18 35.98 0 0 10 10 46.40HE 19 46.65 0 0 10 10 37.09HE 20 45.97 0 0 10 10 37.64HE 21 40.25 0 0 10 10 33.00HE 22 36.26 0 0 10 10 27.74HE 23 31.38 0 0 10 10 24.76HE 24 29.49 0 0 10 10 25.83
24 Hr MWh Total $34.22 0 $33.18P k H MWh T t l 587 0
$0
$10
$20
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
Peak Hr MWh Tota l 587 0Off‐Peak Hr MWh Total 234 0
Tota l $$/MWh
Market Data
Offer Price 50.00$ LMP COP Fcst MISO Rev Fcst Cost Fcst Margin
On‐peak CIN.SMARTGEN 36.69$ Day Ahead 50.00$ ‐$ ‐$ ‐$ Off‐Peak CIN.SMARTGEN 29.28$ Real Time 50.00$ ‐$ ‐$ ‐$
$
$40
$50
$60 LMP Forecast at CINERGY.HUB
Base Up Down
Off Peak CIN.SMARTGEN 29.28$ Real Time 50.00$ $ $ $ On‐peak Cin Hub 35.60$ ‐$ ‐$ ‐$ Off‐Peak Cin Hub 28.59$
Only Day Ahead 50.00$ 8,212.00$ 12,000.00$ (3,788.00)$ Only Real Time 50.00$ 7,962.50$ 12,000.00$ (4,037.50)$
Scheduling Notes/Operational Issues
$0
$10
$20
$30
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
PaperCon 2011 Page 223
Smart Grid For Industrial FacilitiesPower Marketer Daily Purchase Activity
U it D t DA DA DA RT RT RT MW T t lUnit Date DA Bid MW
DA Cleared Demand
DA Cost
RT Metered
MW
RT Deviation from DA
RT MW Dev. Cost
LMP
TotalEnergy
Revenue
CIN.SMARTLOAD 2/1/2011 - - -$ 28.00 28.00 $1,121.45 1,121.45$ 2/2/2011 - - -$ 50.00 50.00 $1,342.83 1,342.83$ 2/3/2011 - - -$ 37.00 37.00 $1,648.83 1,648.83$ 2/4/2011 $ 47 00 47 00 $1 823 69 1 823 69$2/4/2011 - - -$ 47.00 47.00 $1,823.69 1,823.69$ 2/5/2011 - - -$ 9.00 9.00 $319.86 319.86$ 2/6/2011 - - -$ - - $0.00 -$ 2/7/2011 - - -$ 40.00 40.00 $1,190.43 1,190.43$ 2/8/2011 - - -$ 35.00 35.00 $981.62 981.62$ 2/9/2011 - - -$ 29.00 29.00 $1,598.33 1,598.33$ 2/10/2011 - - -$ 30.00 30.00 $1,282.19 1,282.19$ 2/11/2011 - - -$ 37.00 37.00 $1,574.18 1,574.18$ 2/12/2011 - - -$ 33.00 33.00 $1,006.66 1,006.66$ 2/13/2011 - - -$ 42.00 42.00 $1,009.92 1,009.92$ 2/14/2011 - - -$ 35.00 35.00 $1,071.28 1,071.28$ 2/15/2011 - - -$ 89.00 89.00 $2,508.53 2,508.53$ 2/16/2011 - - -$ 126.00 126.00 $2,947.23 2,947.23$ 2/17/2011 - - -$ 124.00 124.00 $3,183.13 3,183.13$ 2/17/2011 $ $ , ,$2/18/2011 - - -$ 102.00 102.00 $3,326.20 3,326.20$ 2/19/2011 - - -$ 54.00 54.00 $2,284.22 2,284.22$ 2/20/2011 - - -$ 49.00 49.00 $1,703.96 1,703.96$ 2/21/2011 - - -$ 53.00 53.00 $3,354.92 3,354.92$ 2/22/2011 - - -$ 59.00 59.00 $2,504.80 2,504.80$ 2/23/2011 - - -$ 34.00 34.00 $1,447.48 1,447.48$ 2/24/2011 $ 59 00 59 00 $2 383 67 2 383 67$2/24/2011 - - -$ 59.00 59.00 $2,383.67 2,383.67$ 2/25/2011 - - -$ 69.00 69.00 $2,431.99 2,431.99$ 2/26/2011 - - -$ 85.00 85.00 $2,707.06 2,707.06$ 2/27/2011 - - -$ 81.00 81.00 $2,393.13 2,393.13$ 2/28/2011 - - -$ - - $0.00 -$ 3/1/2011 - - -$ - - $0.00 -$ 3/2/2011 - - -$ - - $0.00 -$ 3/3/2011 - - -$ - - $0.00 -$
Total - -$ 1,436.00 1,436.00 $49,147.59 49,147.59$
PaperCon 2011 Page 224
Smart Grid For Industrial FacilitiesPower Marketer Daily Sales Activity
U i D DA DA DA R RT RT RT MW T lUnit Date DA Offered
MW
DA Cleared
MW
DA Revenue RT Metered
MW
RT Deviation from DA
RT MW Dev. Cost
LMP
TotalEnergy
Revenue
CIN.SMARTGEN 2/1/2011 (240.00) ‐ ‐ (26.00) (26.00) (1,053.72) (1,053.72) 2/2/2011 (240.00) ‐ ‐ (2.00) (2.00) (44.95) (44.95) 2/3/2011 (240.00) ‐ ‐ (45.00) (45.00) (1,993.13) (1,993.13) 2/4/2011 (240 00) (50 00) (2 674 60) (33 00) 17 00 2 170 49 (504 11)2/4/2011 (240.00) (50.00) (2,674.60) (33.00) 17.00 2,170.49 (504.11) 2/5/2011 (240.00) ‐ ‐ (36.00) (36.00) (1,780.73) (1,780.73) 2/6/2011 (240.00) ‐ ‐ (6.00) (6.00) (161.67) (161.67) 2/7/2011 (240.00) ‐ ‐ (5.00) (5.00) (133.55) (133.55) 2/8/2011 (240.00) (80.00) (4,377.00) (44.00) 36.00 1,377.44 (2,999.56) 2/9/2011 (240.00) (80.00) (4,493.40) (85.00) (5.00) 623.17 (3,870.23) 2/10/2011 (240.00) (70.00) (3,729.80) (62.00) 8.00 29.58 (3,700.22) 2/11/2011 (240.00) (10.00) (532.90) (52.00) (42.00) (2,068.03) (2,600.93) 2/12/2011 (240.00) ‐ ‐ (3.00) (3.00) (67.32) (67.32) 2/13/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/14/2011 (240.00) ‐ ‐ (4.00) (4.00) (112.91) (112.91) 2/15/2011 (240.00) ‐ ‐ (1.00) (1.00) (80.76) (80.76) 2/16/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/17/2011 (240 00) ‐ ‐ ‐ ‐ ‐ ‐2/17/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/18/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/19/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/20/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/21/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/22/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/23/2011 (240.00) ‐ ‐ (31.00) (31.00) (943.92) (943.92) 2/24/2011 (240.00) ‐ ‐ (29.00) (29.00) (1,658.09) (1,658.09) 2/25/2011 (240.00) ‐ ‐ (15.00) (15.00) (639.69) (639.69) 2/26/2011 (240.00) ‐ ‐ ‐ ‐ ‐ ‐ 2/27/2011 (240.00) ‐ ‐ (1.00) (1.00) (28.36) (28.36) 2/28/2011 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3/1/2011 ‐ ‐ ‐ ‐ ‐ ‐ ‐ 3/2/2011 ‐ ‐ ‐ ‐ ‐ ‐ ‐ / /3/3/2011 ‐ ‐ ‐ ‐ ‐ ‐ ‐
Total (290.00) (15,807.70) (480.00) (190.00) (6,566.15) (22,373.85)
PaperCon 2011 Page 225
Smart Grid For Industrial Facilities
ACTIVITY ATACTIVITY AT GRID NODE
PaperCon 2011 Page 226
Smart Grid For Industrial Facilities
PaperCon 2011 Page 227
Smart Grid For Industrial Facilities
PaperCon 2011 Page 228
Smart Grid For Industrial Facilities
C t / R It A i t d ith S t G idCost / Revenue Items Associated with Smart Grid
Fuel bill
Weekly MISO settlement (ISO)Weekly MISO settlement (ISO)
Monthly non‐bypassable Duke bill
Schedule II charge monthly
Peak MISO charge monthly
Capacity sales
Ancillary services sales
PaperCon 2011 Page 229
Smart Grid For Industrial Facilities
Benefits to SMART PapersBenefits to SMART Papers
Shoulder months• Lowered variable energy costs 10‐20%
Remote waste water plant• Self‐sourcing by CRES reduced cost by 60%
Peak monthsPeak months• Power sales into peaks revenue at a positive margin
Significantly improved understanding of costs of steam and electricity
Significantly revised operating strategy of utility
Monitoring of electric system flags process and operating changes immediately• Utility operators are engaged and reactiveUtility operators are engaged and reactive• Energy conservation activity has higher ROI
More opportunities arise regularly
Paradigms shattered in a good way
PaperCon 2011 Page 230
Smart Grid For Industrial Facilities
B fit t OthBenefits to Others
Provide node stability
Electric grid management by economics of priceElectric grid management by economics of price
Reduced emissions
PaperCon 2011 Page 231
Smart Grid For Industrial Facilities
Wh t T W t h F O Y P j tWhat To Watch For On Your Project
There is no manual or cook book – Be flexible Overcome obstacles
R l i l iRegulations are regulations• You are the tail, not the dog Rates, pricing, fees, changes
Understand charges beyond electric wholesale costg y
Get to transmission level Reduce non‐bypassables Demand issues
Develop your operational model How will you act?
Understand your marginal costs• Can vary across load profile• Average is dangerous to optimization• Average is dangerous to optimization• Fuel + conversion to MW
System to manage your exposure
PaperCon 2011 Page 232
Smart Grid For Industrial Facilities
Wh t T W t h F O Y P j tWhat To Watch For On Your Project (cont.)
Conservation Means more• Power parasitic• Plant/process
Real time data and information
Empower your operators
PaperCon 2011 Page 233